What is reserves for unrealized costs in SAP CO-PC - Product Cost Controlling?

SAP Term: reserves for unrealized costs

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Reserves that can be mapped in Cost Object Controlling -OBJ in the course of the results analysis If the costs of the sales revenue are higher than the actual costs, the reserves for uncovered costs correspond with the difference from the costs of the sales revenue and the actual costs. in the course of the determination of work in process to actual costs If the credits exceed the actual costs due to goods receipts, the reserves for uncovered costs correspond with the difference between the actual costs and credits due to goods receipts.

Smart SAP Assistant

• Key Concepts: 
  Reserves for unrealized costs is a term used in SAP's Product Cost Controlling (CO-PC) component. It refers to the amount of money that is set aside to cover potential future costs that have not yet been realized. This reserve is used to ensure that the company has enough funds to cover any unexpected costs that may arise in the future. 
  
  How to use it: 
  In SAP's Product Cost Controlling component, reserves for unrealized costs are set up by creating a reserve account. This account is then used to track the amount of money that has been set aside for potential future costs. The reserve account can be used to monitor the amount of money that has been set aside and to ensure that it is sufficient to cover any unexpected costs that may arise in the future. 
  
  Tips & Tricks: 
  It is important to regularly review the amount of money that has been set aside in the reserve account and adjust it as needed. This will help ensure that the company has enough funds available to cover any unexpected costs that may arise in the future. 
  
  Related Information: 
  For more information on reserves for unrealized costs, please refer to SAP's Product Cost Controlling documentation.